Automotive News - February 4, 2008 - (Page 72) 72 • FEBRUARY 4, 2008 INSIGHT Factories encourage dealers to go green Mary Connelly mconnelly@crain.com G reen auto dealerships aren’t new. Until now, though, building or renovating dealerships that reflect environmental values has mostly been a product of dealers’ initiative. That’s changing. This year, automakers such as General Motors, Chrysler LLC and American Honda Motor Co. Inc. are recommending environmental features for dealership construction and upgrades. They join Toyota Motor Sales U.S.A. Inc., which has promoted green dealerships since 2004. Going green remains voluntary for dealers. Factories generally do not pay subsidies or impose penalties related to environmental standards. But automakers are providing dealers and dealership architects guidelines for getting stores certified by the U.S. Green Building Council. The private nonprofit organization promotes environmentally friendly design and construction. The council confers several levels of certification for Leadership in Energy and Environmental Design, or LEED. To achieve certification, a dealership might add a car wash that uses only recycled water or use panels of 95 percent recycled aluminum on an outside fascia. Car companies commonly include environmental practices in their manufacturing plants and other facilities. Now, says Bill Stacy, GM’s director of strategic operations and special projects, his company is “working to accelerate our efforts every way we can” to encourage dealers to go green. Environmentally friendly features at Lexus of Westminster in Southern California include lights that turn off when an area is not in use, window shades that automatically adjust and solar shells that shade and reflect light into the interior. The dealership treats water it uses before the water reaches city sewers. GM’s shining example ➤ 74 Cindy Knight declined to estimate how many Toyota and Lexus dealers have achieved LEED certification. But the company remains at the forefront of green dealer practices. The Lexus of Westminster dealership in Southern California spent $20 million to build a service and parts center in 2004 and a showroom in 2007. Both buildings are environmentally friendly, says John Oh, the dealership’s general manager. Spend a little, spend a lot Some green practices cost dealerships almost nothing. Others are a major expense, factory experts say. Without spending much, dealerships can boost insulation by wrapping the water heater, turn down building thermostats and use more energyefficient lighting. For more money, dealerships can use environmentally friendly materials in carpets and furniture, retain rainwater and apply it to landscaping, and use skylights in showrooms and service areas to cut electricity use. Among costlier options to generate electricity are solar panels or windmills. Marketing tool But Joe Chrzanowski, GM’s executive director of dealer network planning and investment, added that “we can’t force our dealers to do anything. “It has to make sense financially for them,” Chrzanowski told Automotive News. “They can put the certification sticker on the door or use the environmentally friendly aspect of their facility as part of their marketing.” Mark Nagel, Chrysler LLC’s senior manager of dealer network strategy, says the company’s new environmental proposals for dealerships are attracting interest. “For dealers, the question is, ‘Does the investment pay off for me in a reasonable amount of time?’ ” Nagel says. “We leave it up to the dealer to choose how green he would like to be.” Toyota Motor Sales spokeswoman Return on investment “It probably cost an additional 20 percent to put the materials in that were more green,” Oh says. “If we can get 20 years out of the buildings, we will get our money back and then some.” The dealership did not apply for LEED certification because of the time required for inspections and a projected $200,000 in paperwork costs, Oh says. But he estimates the dealership meets 90 percent of criteria for certification. At the dealership, motion sensors in work areas turn off lights when a space is not in use. A computer auto- matically adjusts shades on the showroom’s front window, which faces west. Five solar shells on the sides of the dealership shade and reflect light into the interior. The dealership treats all water it uses before it reaches city sewers. “We went from a 14,000-squarefoot showroom to a 34,000-squarefoot showroom,” Oh says, “but the increase in actual electricity was minimal.” Chrysler’s Nagel says two dealerships under construction will meet LEED standards. “They are our first step,” he says. Last year, he says, Chrysler reviewed standardized materials used by its dealerships to ensure they comply with certification guidelines. “We went through paints and finishes to make sure they were low (in volatile organic compounds) and were compliant with LEED,” he says. “We looked at our tiles and floor finishes for recyclable materials. We rolled through the entire design.” Taking the lead Carlos Planas is building a $34 million dealership in Miami that he expects to earn the highest LEED certification. Tamiami Chrysler-Jeep-Dodge is scheduled to open in December. The dealership’s green materials include glass partitions that cost $450,000 more than drywall, Planas says. The partitions will distribute light throughout the store’s interior. Air conditioners that run without water will save more than 300,000 gallons every three months, he says. The building’s green features also include solar panels, eco-landscaping and rainwater retrieval. “We are spending $3.5 or $4 million more to be environmental and get the gold certificate,” Planas says. “I am doing it for the future of our area. It will benefit everybody. “Someone has to take the lead. I am hoping people will follow.” Chris Martin, a spokesman for American Honda, says Honda seeks to add a recommendation for LEED certification in its next set of dealership image guidelines. Martin says there is no time frame for updating those standards. But even without formal guidelines, he says, Honda is encouraging dealers to adopt green building practices. Adds Martin: “It is part of our corporate culture.” c http://www.redflagrulescompliance.com http://www.redflagrulescompliance.com
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